Company Number: 14383533

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net asset position with current liabilities vastly exceeding current assets, indicating high solvency and liquidity risk.

2. Key Concerns:

• Severe Negative Net Current Assets: As of 31 December 2024, net current liabilities stand at £317,088 against current assets of only £1,269, raising immediate concerns regarding the company’s ability to meet short-term obligations.
• Consistent Net Loss Position: Shareholders’ funds are deeply negative and have deteriorated from £-113,508 (FY 2023) to £-317,088 (FY 2024), implying ongoing operational losses or capital erosion.
• Recent Director Turnover: Multiple director resignations and appointments within a short period in 2024 may suggest instability at the governance level, potentially impacting strategic continuity and oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s latest accounts (up to 31 December 2024) and confirmation statement are filed on time with no overdue filings, indicating regulatory compliance.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which reduces administrative burden.
• Defined Ownership Structure: Clear identification of a single significant controller (Mr Otto Dieter Specht) owning 75-100% shares and voting rights provides transparency around control.

4. Due Diligence Notes:

• Investigate the Nature and Terms of Current Liabilities: Understanding what constitutes the £318k liabilities (e.g., loans, trade payables) is critical to assess repayment risk and potential creditor pressure.
• Review Cash Flow and Funding Sources: Given the near absence of current assets and negative working capital, examine cash flow forecasts and any recent or planned capital injections or support from shareholders.
• Assess Business Model and Revenue Generation: Limited information is available regarding operational performance or revenue streams; further insight into the sustainability of the business model and customer base is necessary.
• Director and Governance Changes: Clarify reasons behind director resignations and appointments during 2024 to understand any underlying governance or operational issues.
• Examine Related Party Transactions: Given the involvement of significant shareholders as directors, scrutinize any related party transactions or financial support arrangements.